Question

If the static budget variance for materials is $250 F and the budgeted cost for materials is $52,000, then the actual cost of materials is a.$51,750. b.$51,950. c.$51,150. d.$52,150.

Answer 1

Answer:

a. $51,750

Explanation:

Given:

Budget = $52,000

Variance = 250 F

Actual cost of materials = budget - variance

$52,000 - 250

= $51,750

Answer 2

Answer:

Option A is correct: $51750

Explanation:

Since static budget variance for materials is favourable;hence actual cost is less than the budgeted cost.

hence actual cost=(52000-250)

=$51750.